Homeowners who have gotten behind on their mortgage payments or county property tax payments and are at risk of losing their homes have new hope, thanks to a program funded by the Michigan State Housing Development Authority.

Michigan's Hardest Hit Funds have $548 million available through four programs to address challenges facing homeowners because of "involuntary hardship," explained Jim Buxton, a MSHDA certified housing counselor at Michigan State University Extension in Ionia County.

A qualifying involuntary hardship is caused by an unexpected event beyond the homeowner's control that impacts their ability to make payments. Acceptable hardships are losing a job, income reduction, a medical condition, death, divorce and disability. Unacceptable hardships are not eligible.

"Unacceptable hardships are when you are not being responsible with your budget," Buxton said.

Helping with property taxes is a new aspect of the program, said Judy Clark, Ionia County treasurer. The program can cover past due taxes up to three years ago, and can help homeowners catch up in order to stay out of foreclosure.

"Tax foreclosures have become quite an issue," she said. "They are more and more prominent. Even homeowners who own their homes outright can lose their home because they have fallen behind on property taxes."

When homeowners are able to catch up on their property taxes, the can avoid sizable fees and interest, including forfeiture fees, which are, at a minimum, $200, plus interest, which increases monthly and is retroactive, Clark said.

"This program saves them so much money just to avoid forfeiture or, in the case of 2010 taxes, avoid foreclosure," she added.

The Michigan's Hardest-Hit Funds program includes:

• Unemployment Mortgage Subsidy Program, which will provide half of the monthly mortgage payment for one year – up to $30,000 – while the homeowner is receiving unemployment benefits;

• Loan Rescue Program, which helps homeowners catch up when they have fallen behind on mortgage and/or property tax payments, up to $30,000;

• Modification Plan Program, which will help homeowners catch up on their mortgage, up to $30,000, if their lender agrees to modify their existing mortgage terms;

• Principal Curtailment Program, which helps homeowners with a combined loan balance higher than the value of their home, up to $10,000, if the lender provides a one-to-one match and agrees to modify the existing mortgage terms.

"Life happens, and people get caught in these situations. Now there's help," said Brenda Long, family and consumer sciences educator at Ionia County MSU Extension. "But part of this program is the understanding that this is a one-time fix to get out of the hole and stay current."

The program not only helps with family stability but also with community stability, because neighborhoods stay viable, Long said.

"It also helps the stability of local government, because local property taxes are paid," she added.

Page 2 of 2 - To take advantage of the Michigan's Hardest-Hit Funds programs, applications must be in by Jan. 31, in order to prevent tax foreclosures on homeowners who owe 2010 property taxes. Applications are available online, and Buxton and Long are available to help homeowners who don't have a computer to apply or to answer questions. Call 616-527-5357.

More information and the application for the Michigan's Hardest-Hit Funds program is online at www.stepforwardmichigan.org. The site contains step-by-step instructions for filling out the application. Homeowners also can call toll-free at 866-946-7432 and receive help applying.